The aviation major is expected to provide 100% funding to the project and purcahse at least 50% of the crude produced by the facility.
Algae.Tec, as per the agreement, will manage the facility and receive license fees and profits to accrue.
"Both parties will jointly develop a large-scale industrial algae oil production plant based on Algae.Tec’s technology and operating support, and Lufthansa’s offtake commitment for such algae oils," said the agreement.
The agreement is an extension of the memorandum of understanding signed between the two companies in January 2012 and remains subject to approval from the boards of the respective companies.
